TOYS `R' US:

Suit alleges Amazon violated toy deal

NEW YORK — The online unit of Toys "R" Us Inc. has sued Amazon.com Inc., charging it is violating Toysrus.com's contract to be the only seller of toys, games and baby products on Amazon.com.

As of May 17, other retailers were offering more than 4,000 products in those categories on Amazon.com, Toys "R" Us said.

Amazon.com believes it has the right to have other sellers offer toys that Toys "R" Us doesn't sell. A spokeswoman said the allegations are "without merit."

Toys "R" Us said it wasn't willing to pay for exclusivity that it wasn't receiving. The company said it has paid $200 million and will continue to pay under its contract as the exclusivity matter is being resolved.